HOUSING

HOUSING FOR
THE POOR
INTRODUCTION
• In India like most of the developing countries, most
of the urban as well as rural population encounter
serious housing problems and cannot afford decent
housing of any sort.
• Over 40% of the population of our nation live in
poverty housing in towns and cities, slum
settlements and rural villages.
• This inadequacy seriously limits prospects for
economic and social development.
• To accommodate a wide range of housing needs
and a growing population, a city needs to provide a
steady supply of new housing
• “Most urban poor simply cannot afford decent
shelter and this is where housing finance becomes
so important”.
Artist Village, Belapur, Navi Mumbai
Housing Complex, Dhanas, Chandigarh

SHORTAGE OF HOUSING
□ Total housing shortage in the country was
projected as 18.78 million in the beginning of the
12th five year plan (2012-17).
□ 90 per cent of shortage exists for the

EWS(Economically Weaker Sections)/LIG(Lower

Income Groups) section of society.
□ Also according to a report of the Ministry Of

Housing And Urban Poverty Alleviation, the shortage

of housing units in urban areas was 18.7 million
mostly for EWS/LIG category.
□ 11 million houses were lying vacant indicating very

low demand for higher type of quarters.

Source: Report Of The Technical Group On Urban Housing Shortage(2012-2017)
(2007)

FOR URBAN POOR

TYPES OF HOUSING
FOR POORS
SLUMS
EWS
LIG
FOR RURAL POOR
URBAN POOR
•The urban poor are only an out-flow of the rural
poor in to the urban area
• 31% of the urban population is poor
• 79 percent of the rural migrants in metropolitans
live in slum settlement
• Urban poverty nationally on an average is at 40
percent of the total urban population.
LIG 40%
HOUSING SHORTAGE
MIG 4%
EWS 56%
Source: Report Of The Technical Group On Urban Housing Shortage(2012-2017)

CATEGORIES
• EWS(Economically Weaker Sections):

Households having an annual income up to RS.

3,00,000 lakh. States/UT’s have the flexibility to

redefine the annual income criteria in

consultation with the centre.
• LIG(Lower Income Groups): Households are

defined as households having an annual income

between RS. 3,00,001 and RS. 6,00,000.

States/UT’s shall have the flexibility to redefine

the annual income criteria as per local conditions

in consultation with the centre.

• SLUMS: A compact area of at least 300

population or about 60-70 households of poorly

built congested tenements, in an unhygienic

environment usually with inadequate

infrastructure and lacking in proper sanitation

and drinking water facilities

EWS Housing In Delhi
LIG Housing In Chandigarh
SLUM Housing In Delhi
EWS HOUSING SCHEMES
Typical floor plan consisting four dwelling units on
each floor. The building block is ground plus three-
storied R.C.C. framed structure.
Room areas
Description Detail
7.15 sq.Mt.
Living room 2.60 M x 2.75 m
3.60 sq.Mt.
Kitchen 2.00 M x 1.80 m
0.882 sq.Mt.
W.C. 0.98 M x 0.90 m
Balcony 1.05 M wide
Total built- up area
22.45 sq. Mtr.

LIG HOUSING SCHEME

DESCRIPTION DETAIL CARPET AREAS
LIVING ROOM 3.13 M X 2.97 M 9.29 SQ.MT.
KITCHEN 2.21 M X 2.44 M 5.39 SQ.MT.
BED ROOM 2.82 M X 3.05 M 8.60 SQ.MT.
W.C. 0.91 M X 0.91 M 0.82 SQ.MT.
BATH 1.98 M X 0.91 M 1.80 SQ.MT.
PASSAGE 1.00 M X 0.91 M 0.91 SQ.MT.
BALCONY 0.91 M X 2.00 M 1.82 SQ.MT.
 38.00 SQ. MT.
TOTAL BUILT-UP AREA

SLUMS
❑Causes that create Slums
• Rural-Urban Migration
• Urbanisation
• Poor house planning
• Poor infrastructure, social exclusion and economic
stagnation ❑Risks from Slums
• Vulnerabilityto natural and unnatural hazards
• Unemployment and informal economy
• Violence
• Disease
• Child Malnutrition
• Epidemics
• Poverty
• Politics
• Social Conflicts
• Natural Disasters
Slums in Mumbai

SLUMS ❑Countermeasures
• Slum removal
• Slum relocation
• Slum upgrading
• Urban infrastructure development and public
housing ❑Urban infrastructure development and
public housing:
• Urban infrastructure such as reliable high speed
mass transit system, motorways/interstates, and
public housing projects have been cited as
responsible for the disappearance of major slums.
• As cities expanded and business parks scattered
due to cost ineffectiveness, people moved to live in
the suburbs; thus retail, logistics, house
maintenance and other businesses followed demand
patterns.
Slums in Mumbai
ISSUES IN THE
DEVELOPMENT
• Land availability and political issues
• Availability of finance with states
• Availability of loans to EWS and LIG persons
• Cost of bulk services, development and amenities
• Ownership title
• Approvals from local bodies and other regulatory
bodies
• Job availability near to residential place
• Availability of construction materials
• Cost inflation
• Quality
• Other issues of subsidies forcing slum dwellers not
to shift
DEMAND-SUPPLY DYNAMICS OF HOUSING FOR
VARIOUS INCOME GROUPS

High demand-supply gap for residential units priced below 10 Lakhs

50%
45%
10,000 9,000 8.000 7,000
40% 35%
Share of Demand/Supply
6,000 5,000
Cost of Unit (INR 000)
25%

15% 10% 5%
4,000 3,000 2.000 1,000

200,000 - 300,001 - 500,001- 700,001- > 1.000.0000

300,000 500,000 700,000 1,000,000 Share of Demand
 Share of Supply Affordable Capital Value (Min) Affordable Capital Value
(Max)

INFERENCE:Share of demand is high for income group 2-

3 lakhs per annum and supply is low when compared to
other income groups.

Source: john lang lasalla Research

Indira Awas Yojana ❑About Indira

Awaas Yojana
▪ The Government of India launched the Indira
Awaas Yojana in 1985 to provide housing solutions
to the homeless across the country.
▪ Implemented by the Ministry of Rural Development,
this scheme aims to reduce the number of homeless
people in the country, fulfilling a basic criteria of
accommodation for millions.
▪ This is a cost sharing scheme, with the Central
Government bearing 75% of the expense incurred
while state governments bear the remaining 25%,
except in the case of Union Territories and North
Eastern states, in which case the central
government bears 100% and 90% of the costs
respectively. ❑Purpose of Indira Awaas Yojana
▪ It aims to fulfil this by providing financial assistance
to the weaker sections of the community, ensuring
they have sufficient funds to build a house for
themselves.
▪ Through this scheme, the government hopes to
have permanent houses in all towns and villages of
the country by 2017.

Indira Awas Yojana ❑Eligibility

Criteria Financial assistance under this scheme can be
availed by the following individuals.
• Members of Scheduled Castes and Scheduled
Tribes
• Members belonging to minorities
• Members who fall below the poverty line Widows
• Family members of defense personnel who lost
their during lives in action
• Ex-servicemen/women and members of the
paramilitary forces
❑Implementation of Indira Awaas Yojana Since its
inception, Indira Awaas Yojana has helped millions in
the country. A total of over 25 million houses have
been constructed in the last 20 years, providing
shelter to millions. The government hopes to
increase this number in the coming years, eliminating
the problem of rural housing in the country.

Pradhan Mantri Awaas

Yojana (Urban)
❑About Pradhan Mantri Awaas Yojana (Urban)
▪ “Housing for All” Mission for Urban area will be
implemented during 2015-2022 .
▪ The mission will be implemented through four
verticals giving option to beneficiaries, Urban Local
Bodies(ULB) and State Governments, as under:- i)
“In Situ” slum Redevelopment ii) Affordable housing
through Credit Linked Subsidy iii) Affordable
Housing in Partnership iv) Subsidy for beneficiary-
led individual house construction.
▪ Out of the above, Affordable Housing through
Credit Linked Subsidy will be implemented through
Banks/Financial Institutions, under the mission.
▪ The beneficiary can take advantage under only one
component, from above.
▪ The Mission have been effective from 17.06.2015,
till 31.03.2022.

Pradhan Mantri Awaas

Yojana (Urban)
❑Coverage The Scheme will cover 4041 statutory
towns as per Census 2011. List of 4041 statutory
towns as per Census 2011 is available in
www.nhb.org.in `
❑Purpose of Pradhan Mantri Awaas Yojana(Urban)

▪ Credit Linked Subsidy will be available for housing

loans availed for new construction and addition of
rooms, kitchen, toilet etc., to existing dwelling as
incremental housing.
▪ The carpet area of house being constructed or
enhanced under this component of the mission
should be upto 30 sq.m. for EWS Category and upto
60 square meters for LIG category.
▪ The beneficiary, at his/her discretion, can build a
house of larger area but interest subvention would
be limited to first Rs.6 lakh only. `
❑About MMRDA rental housing scheme
• The MMRDA rental housing scheme is based on
the incentivization of housing development through
premium Floor Space Index (FSI) or Transferable
development rights (Tdr) for undertaking the
development of rental housing stock by land owners/
private developers.
• Higher FSI/Tdr is allowed to be used by the
developers towards Cross subsidization of rental
houses with other developments on the plots.

MMRDA rental housing

scheme
• Two
interesting features of the MMRDA rental
housing scheme are: (a) It includes both development
as well as operation and maintenance of rental
housing (b) It separates out rental property
development and management.

MMRDA rental housing

scheme
• In line with the state housing policy (GoM 2007),
the MMRDA had launched a rental housing scheme
in 2011, with a view to provide an affordable urban
housing option to poorer sections of population.
• Under this scheme, rental housing units are
proposed to be built, which are of the size 160 sq.ft
carpet area and they command a rent of Rs 1000-
1500 per month.
• These units are exclusively reserved for EWS and
LIG households with monthly income less than Rs
5000/-
• Low cost housing techniques e.g., precast units,
were to be employed in the rental housing scheme,
which would give higher returns on investment to its
developers.
• MMRDA had set an initial target of developing
about 5 lakh units by 2015 and thereafter 1 lakh
each year until 2031.
• The rental housing scheme received a good
response from the developers in the form of 215
applications to build over 9 lakh rental housing units
upon screening, 29 developers were selected for
developing 90,000 housing units
• The MMRDA built rental homes in Vartak Nagar for
the rehabilitation of people living in dangerous
structures in 2013.
• Out of the 1,492 homes, around 1,000 are
occupied.
• Each flat is 160sqft and residents have to pay
Rs2,000 rent every month.
• The cluster of four buildings has 40 shops.
• The buildings have a sewage treatment plant, solar
panels, two play schools and two community halls
The MMRDA buildings at Vartak Nagar.

MMRDA rental housing

scheme
Jawaharlal Nehru National
❑About JnNURM

Urban Renewal Mission

• The aim is to encourage reforms and fast track
planned development of identified cities.
• Focus is to be on efficiency in urban infrastructure
and service delivery mechanisms, community
participation, and accountability of ULBs/ Parastatal
agencies towards citizens. ❑Objectives of the
Mission The objectives of the JNNURM are to
ensure that the following are achieved in the urban
sector;. (a) Focused attention to integrated
development of infrastructure services in cities
covered under the Mission;. (b) Establishment of
linkages between asset-creation and asset-
management through
a predefined reforms for long-term project
sustainability;. (c) Ensuring adequate funds to meet
the deficiencies in urban infrastructural
services;.
(d) Planned development of identified cities including
peri-urban areas, outgrowths and urban corridors
leading to dispersed urbanisation;. (e) Scale-up
delivery of civic amenities and provision of utilities
with emphasis on universal access to the urban
poor;. (f) Special focus on urban renewal
programme for the old city areas to reduce
congestion; and (g) Provision of basic services to
the urban poor including security of tenure at
affordable prices, improved housing, water supply
and sanitation, and ensuring delivery of other
existing universal services of the government for
education, health and social security.
Jawaharlal Nehru National
Urban Renewal Mission
Jawaharlal Nehru National
Urban Renewal Mission
The JNNURM Process Process Flow
The Government of India believes that the process
of formulating the policy framework for JNNURM
would continuously evolve depending upon the
feedback from the institutional entities established
for JNNURM.
Sanction and Disbursement of Assistance ( Sub
Mission I ) Funding Pattern: Central ( GoI) : 35 %
State : 15 % TMC own and external resources : 50
% Sanction and Disbursement of Assistance ( Sub
Mission II ) Funding Pattern:
Central ( GoI) : 50 % State : 30 % Beneficiaries : 11
% on building cost TMC own and external resources
: 20 % of infrastructural cost
: 9 % of building cost

HUDCO Niwas
❑About HUDCO Niwas
▪ To provide housing finance to individual, HUDCO
launched its Retail Finance window in 1998.
▪ HUDCO NIWAS offers most competitive interest
rates coupled with broad based user friendly option
and value added services as a part of its scheme.
▪ Loans are provided for constructions or purchase of
house/flat, for purchase of plot form public agencies,
reputed builders, cooperative societies of
government employees, for extension or
improvements of existing house, registration of
existing house including conversion from lease hold,
refinancing of existing loan taken from other
institutions.
▪ Bulk loan also provided to State Government, Para-
Statal institution of the State Government and for
profit PSUs, for giving House Building Advance to
their employees.

HUDCO Niwas
❑HUDCO NIWAS - a cut above the rest
• Most competitive interest rates Interest calculated
on monthly reducing balance.
• Free personal accident insurance to cover
outstanding loan amount Zero processing and low
administrative charges @ 0.25% of the loan amount
sanctioned.
• No prepayment penalties. Facility of resetting of
existing loan from fixed to floating & vice versa on
nominal charges.
• Loan Tenure upto 25 years.
• Transparency and No hidden cost Free counselling
on alternate building technologies.
• Free counselling on designing the house

HOUSING COMPLEX,
DHANAS, CHANDIGARH
• TOTAL SITE AREA: 130 ACRES
• DWELLING UNITS: 8448
• Chandigarh, the new planned city of India grew
with unplanned growth of squatter settlements from
the beginning.
• The slums with poor housing conditions and
services grew due to lack of planning of housing for
the labour who worked during initial construction
activities and then other informal activities.
• The Chandigarh Administration in an attempt to
make the city slum free has assigned the task of
construction of dwelling units under ‘Chandigarh
Small Flats Scheme 2006’ to CHB as its
implementing agency.
• 25728 Flats are aimed to be constructed under the
scheme for improving the existing environments of
the city.
• Under the scheme, bio-metrically identified slum
dwellers are rehabilitated at eight locations in the
city and the areas like Dhanas, Mauli Jagran, Ram
darbar, being some amongst them.
• The slum rehabilitation complexes are developed
in the form of integrated townships with all urban
planning norms.
33
• The study has been conducted to achieve the
following objectives:
– To understand the interconnected issue of
planning for the urban poor in terms of housing,
basic services and livelihood provision for the urban
poor – To critically analyze the emerging policies,
practices and issues in the
context of planning for the poor – To develop
strategies towards ensuring better planning for
sustainable living
conditions for the urban poor.
• The infrastructure at the Housing Complex consists
of:
– Schools: 4 nos. (11.62 acre) – Service shops sites:
2 nos. (1.04 acre) – Main shopping centre: 1 no.
(2.46 acre) – Religious sites: 2 nos. (1.05 acre) –
Aanganwari: 2 nos. (0.70 acre) – Community
centres: 2 nos. (2.28 acre)
LOCATION MAP The Housing Complex is located at
Dhanas, chandigarh, near sector 25 west.
34
Typical Floor Plan
36
• The slum dwellers have been relocated from
colony no.5 to Dhanas housing complex with land
allotment and provision of services.
• The various small flats have been allotted to
various departments:
– Social welfare department (aanganwari) : 60 flats
– Social welfare department (women and child
development) : 4 flats – Social welfare department
(sc and st corporation) : 4 flats – Social welfare
department (minority commission) : 4 flats – Food
and supply (ration shops dept.) : 5 flats – Education
dept. : 32 flats – Police dept. : 32 flats – Health dept.
(dispensary) : 8 flats – CHB and Maintenance office
: 9 flats – Sample house : 2 flats
• DWELLING UNITS
– The Housing Complex is entered through a 9 mt.
wide road leaving about 1.5
mt. of paved area on both its sides.
– The complex comprises of 132 towers of dwelling
units. Each dwelling unit
comprises of 64 flats having 4 floors in total, i.e.,
G+3.
35
– There are 16 flats on each floor, i.e., 8 mt. on both
sides facing each other
and in between them, there runs a 5.9 mt. wide
corridor which connects all the four floors with a
staircase. – There are two cut-outs running vertically
throughout the dwelling unit
providing adequate ventilation to all the flats and is
also used for the provision of electrical shaft.
Each tower has been provided with its own green
space
Way towards the typical flats on the Upper and
Lower floors
37
– Each flat has an area of 25 sqmt. – Comprising of
a habitable room (3.06X4.56), a bathroom
(1.37X1.37), W.C. (1.37X0.91), area for cooking
alcove (1.56X2.4) and a balcony (2.75X0.725).
Entrance to the flats through a 2mt wide corridor
Cooking alcove having a 0.6mt wide
Habitable Room
working slab
Way towards the balcony Bathroom
38
SCHOOL
• At present, about 32 flats of the D.U. have been
allotted to the school to provide better education to
the children staying in the housing complex.
• Each class room has an area of about 23 sq.mt.
Which can occupy the seating of about 25 students
in a class.
• But otherwise, two primary and two secondary
schools have been proposed in the site covering an
area of about 11.62 acres in total.
Primary School Building Approach to the class rooms

ARTIST VILLAGE:
BELAPUR
• The Belapur Incremental Housing is located in
Sector 8, Belapur, Navi Mumbai, Maharashtra.
• This was envisioned to cater all types of income
groups.
• Belapur incremental housing project - a mass
affordable housing in New Bombay (Navi Mumbai),
which demonstrated how high densities could be
achieved with low- rise courtyard homes, built with
simple materials at a human scale.
• Based on clusters of between seven and 12 pairs
of houses arranged around communal courtyards,
the buildings did not share party walls – allowing
each family to extend and adapt their own house
independently.
• 550 families are planned for in a 5.4- hectare area
limitation. 33

ARTIST VILLAGE:
BELAPUR
• PLANNING SPACES
• The project is generated by a hierarchy of spaces.
The first is the private courtyard of single dwelling
used as a space for outdoor activities during most of
the year.
• Subsequently, seven units are grouped to form a
small courtyard town of about 8m x 8m. Three of
these groups form a module of twenty-one homes
that describes the collective space of the next scale
(approximately 12m x 12m).
• PRINCIPLES
•Identity
•Pluralism
•Income generation
•equity
•open-to-sky space
33

ARTIST VILLAGE:
BELAPUR
• THE MODULES
• Project demonstrates how high density housing
(500 people per hectare) can be achieved in a low-
rise typology, while including (open to sky spaces)
and services, like schools, that the community
requires
• The footprint of each plan varies little in size (from
45 sq. m to 70 sq. m), maintaining equity (fairness)
in the community
• Scheme caters wide range from the lowest budgets
of Rs 20000, Middle income groups Rs 30000-
50000 and Upper income Rs 180000.
• The village was produced with the idea that the
residents were going to alter it in many ways,
making it truly their own, therefore homes are
freestanding, so residents can add on to them as
their families grow; and differently priced plans
appeal to a wide variety of income levels.

ARTIST VILLAGE:
BELAPUR
ARTIST VILLAGE:
BELAPUR
• DESIGN ACHIEVEMENTS
• The feel of the space still intact.
• Ample amount of open and green spaces provided.
• The complex allowed people to modify their houses
freely, whether with a paintbrush or mortar -
something that is never allowed in the type of mass
housing.
• Clusters help build a local community feeling.
• Allowed enhanced interactions which was the
essence of a village.
• The green spaces and playgrounds are maintained
by the NMMC.
AFFORDABILITY AND
LOW COST HOUSING
❑FINANCE
• Housing finance is a factor of production quite
distinct from labour, materials and risk-taking
• Finance is needed for:
– Purchase and development of house-sites,
purchase of building materials and
actual building a house; – Meeting the annual
charges consisting of the upkeep and maintenance
expenses
including rehabilitation of kutcha houses, taxes,
interest and amortization charges on capital; and –
Covering risks involved in long term housing
investment.

AFFORDABILITY AND
LOW COST HOUSING
❑As per the Department Of Housing And
Development Families paying more than 30 percent
of their income for housing are cost burdened and
thus affordable housing means housing on which
spending is 30% or less. ❑Mumbai metropolitan
region development authority (MMRDA) considers
affordable housing if one has to spend maximum
25% on it. ❑For India, it can be defined as housing
affordable to EWS and LIG. ❑The disposable income
of these sections of our society is not more than 15%
of
their total income ❑Factors influencing affordability
include;
• Household size
• Geographic location
• Income and expenditure
• Liabilities/commitments
• Savings
• Disposable income

AFFORDABILITY AND
LOW COST HOUSING
Development of Housing Finance Market in
India
Up to late 1990’s 1998-2003 2003 onwards
Specialized Lenders Housing Finance Companies (HFCs) Bank/Insurance Co
sponsored HFCs Builders promoted HFCs Company promoted HFCs
PHASE-I PHASE-II PHASE-III
Aggressive entry of Banks HFCs loose market share Irrational competition Rapid
disbursement Credit quality issue
Oligopolistic market structure Top 3 key players have over 80% of incremental More
rational market Sustained mortgage growth at 25%

AFFORDABILITY AND
LOW COST HOUSING
Classification of Housing Finance Industry
Non-specialised Housing Institutions
HDFC HUDCO HDFC Commercial HDFC Commercial DHFL BANKS
HUDCO Banks HUDCO Banks
TATA LIC LIC HFL LICHFL GLOBAL GIC GICHF GICHF Cooperative
housing
Finance Societies
Private
On the basis of Information
Organized Sector
Public
Registered with NHB
On the basis of Registration
Unregistered with NHB
Unorganized Sector Small private financers, Household saving, Loan from relatives and
friends
Specialised Housing Institutions
On the basis of Operation
 TO CALCULATE LOAN
AMOUNT AND TENURE
FOR AFFORDABLE
HOUSING • Amount: RS. 1,00,000
• ROI(Rate Of Interest): 10.4%, loan tenure: 20
years: emi: rs 992 per month
• Therefore to make house affordable for a slum
dweller or person from unorganised sector, cost of
house should be about 1 to 1.5 lakh.
• Or with the present definition, cost of affordable
house should be about .
• In case, cost is more than such cost, government
subsidy would be required.

AFFORDABILITY AND
LOW COST HOUSING
Institutions

EXPECTED FLOW OF FUNDS

Expected Total Housing Loan Disbursements (Rs. in crore)
2007-08 2008-09 2009-10 2010-11 20011-12
Commercial Banks 77,000 88,000 102,000 117,000 135,000
HFCs 37,500 43,500 49,500 57,500 66,500
Co-op. Institutions 500 500 500 500 500
 132,000
Gross Flow of Fund Total Housing 115,000 152,000 175,000 201,000
Gross Fund Flow for Urban Housing 86,250 99,000 114,000 131,250 150,750
Net Fund Flow for Urban Housing (50% of Gross Urban Housing) 43,125 49,500 57,000
65,625 75,375
Net Fund Flow for Urban Housing for the 11th Plan period 2,90,625
Source: Report of the 11th five year plan, working group on Urban housing , Govt. of
So the
India, Ministry of Housing and urban poverty alleviation, New Delhi.

total housing finance requirement for 11thfive year

plan would be 361318.1
crore rupees and total fund provided form formal
sector would be 290625 crore rupees
only so, the total shortage would be Rs. 70693.1
crore.